Kevin
0 Thanks
8 Posts
Section 24 is really biting now. I have written to my MP and had a reply from the Treasuary which demonstrates they have either no concern over the harm its now doing as interest rate are 52,400% higher that in 2016 when it introduced, or they really don't care.
The letter went on to say how fair S24 was. I gave it to my accountant and his reply to me was pretty good. I will publlish it if ther is any devolopment of this thread. It is a bit colourful!
I've just had my 22-23 figures done. If S24 didn't exist i would be £17,000 better of. My last years rentla increas was 10% as I hadn't done anything for the 3 years previous with COVID etc. and based it on the CPI for September 2022. This year I have already writtent to my tenants to expect 12% due in most part to the effects of S24.
When it was introduced the Charities said it was a Tenant Tax. I now see why. A tapering in when rates were at a historical low were easily absorbed. This is not so now. This turned out to be a stealth tax, which now is a windfall tax.
Also this was a retrospective Tax. By that I meant my borrowing decisions prior to S24 were based on my expectations and stress testing of interest rates. NOT a tax introduced that was not forseen anywhere on the horrizon when my borring was taken out. I would be more accepting of this if it applied to borrings after the introduction. That would be a fair approach, as with the information a business decision can be made. Not so with existing borrowings. Wer we were stuffed with it.
NRLA and all LL's in the PRS need to get this tax removed before it destroys a section of the PRS that will never come back. I talk about the LLs' that have 1 or maybe 2 properties as part of their pention portfolio. These I see as being the hardest hit, along with those that entered the PRS when BoE rate was .01%. I've read plent of stories of LL's actually paying tax as a result od S24 even though they are making a loss on the property income, and thise that have larger portfolios leving empty or empting HMO's to negate the S24 tax.
We all need to gather some momentum on this matter. It's cosing us dearly, it's costing tenants dearly, and it's reducing the amount of rental properties, especially at the lower end where the PRS picks up most of the governmens slack in affordable rentals.
It's clear the government has LL's and the PRS not held in Ltd. companies in it's sights as an easy hit. We need to make them very certain we are not.
Recind S24 should be at the top of our adgender. I have no idea how to make this happen, so I'm hoping someone here will.
